Fillable Printable Collateral Assignment of Leases and Rents
Fillable Printable Collateral Assignment of Leases and Rents
Collateral Assignment of Leases and Rents
COLLATERAL ASSIGNMENT OF LEASES AND RENTS
This Assignment made this day of by and between
, with an office at
(“Assignor”) and , with an office at
(“Assignee”)
W I T N E S S E T H :
Assignor is the fee owner of premises known as , designated tax
block , lot no. (“Premises”), and has agreed to make a mortgage note to Assignee in the
amount of $ (“Note”)secured by a mortgage in like
amount secured by the Premises (“Mortgage”), (both the Note and Mortgage collectively referred to as “Loan
Documents”) dated even date herewith and intended to be recorded simultaneously herewith.
As a condition to making such a loan to Assignor, Assignee requires Assignor to execute and deliver this
Collateral Assignment of Rents and L eases further securing Assignor’ s indebtedness to Assignee.
NOW THEREFORE, in order to better secure the payment to the Assignee of the principal amount due
under the Loan Documents, with interest now due or hereafter to become due, and of all monetary obligations of
the Assignee under and pursuant to the Loan Documents, the Assignor hereby assigns to the Assignee all of the
rents, profits and issues due and to become due from the Premises, together with all documents, leases,
agreements, service contracts and in surance policies affecting the Premises.
1. RENTS
Upon Assignor’s default under the Loan Documents, Assignee shall have the power and authority to enter
upon and take possession of the Premises and to demand, collect and receive from the tenants, lessees or
parties in possession of the Premises or part thereof, rents now due or to become due; to endorse Assignor’s
name or any subsequent owner of the Premises, on any checks, notes or any other instruments for the payment
of money; to deposit same in Assignee’s accounts; to give any and all instruments in connection thereto in
Assignor’s name or in the name of Assignee; to institute, prosecute, settle or discontinue any summary or other
legal proceedings for the recovery of rents or profits or to recover the whole or part of the Premises; to institute,
prosecute, settle or discontinue any other legal proceeding for the protection and security of the Premises, for
damages sustained to the Premises or from any other cause or for the abatement of any nuisance thereon.
Assignee shall also have the right and power to defend any legal proceeding brought against Assignor or any
subsequent owner of the Premi se s arising out of the operation of the Premises.
2. AUTHORITY TO LEASE
Upon the default by Assignor under the Loan Documents, Assignee shall have the right, power and
authority to lease or rent the Premises or any part thereof; to employ an agent to manage and rent the Premises,
to make any and all improvements to the Premises deemed solely by Assignee to be necessary for the leasing of
the Premises, to maintain and keep the Premises in a rentable condition and in a good state of repair, to purchase
any and all supplies, materials and equipment deemed necessary by Assignee in the continued operation and
maintenance of the Premises, to pay all utilities, taxes and assessments for the Premises now due and to become
due which are or may become liens against the Premises, to pay the principal and interest which are or may
become due under the Loan Documents, to pay the premiums on all insurance policies affecting the Premises
which are or may become due, to comply with all orders or notices of any governmental authority having
jurisdiction over the Premises, to discharge Mechanic’s Liens or any other interests or liens filed against the
Premises either by payment to the lienor or by filing with the appropriate court a bond pursuant to court order, and
to pay all charges and expenses incu rre d in the operation of the Premises.
3. EXPENSES
The Assignee shall have the authority, which is expressly given by Assignor, to pay for all matters from
the rents and revenues collected from the Premises. These costs and expenses and any other payment made by
Assignee in connection with the operation of the Premises, including reasonable attorneys’ fees, shall be a charge
to Assignor and for any and all purposes shall be deemed to be secured by the Loan Documents and may be
deducted from the rents and profits received from the operation of the Premises.
4. ASSIGNEE’S LIABILITY
Except for the willful malfeasance or gross negligence of Assignee, the Assignee shall not be liable for
any act or omission but shall only be liable to account for moneys received by Assignee. Notwithstanding the
foregoing, nothing herein contained shall be deemed to prejudice Assignee’s rights to institute and prosecute the
foreclosure of the Mortgage or to enforce any lien on other collateral which the Assignee has or to prejudice any
other right of Assignee which may arise due to Assignor’s default under the Loan Documents.
5. ASSIGNMENT OF LEASES UPON DEFAULT
In the event of a default under the Loan Documents, Assignor hereby assigns and transfers to Assignee
all the leases and subleases, if any, made to the occupants of the Premises and all of its right, title and interest to
the security stated in those leases and subleases and the Assignor further authorizes and empowers Assignee to
honor the terms, conditions and provisions of the leases and subleases or to rent any one or more of the units in
the Premises upon such terms, conditions and provisions as Assignee, in its sole discretion deems prudent and to
execute any and all documents necessary to accomplish that end. Assignee shall have the full power and
authority to do any and all acts with respect to the Premises as the Assignor might or be permitted to do, with full
power and substitution and Assignor hereby expressly ratifies and confirms those acts which might be done by
Assignee.
6. LEASE MODIFICATION
Assignor will not, except if expressly permitted in the Loan Documents, without the prior written consent
of Assignee cancel, modify or surrender any lease now or in the future existing with respect to any unit in the
Premises; abate or reduce any rent due under any lease; modify, alter or amend any of the terms, provisions and
conditions of any lease; and/or execute any new lease for any unit in the Premises.
7. ACCOUNTABILITY
Assignee, except for its acts of gross negligence or willful misconduct, shall not be liable or responsible in
any way for the failure to account or fraud or defalcation of rents received by Assignee’s agent designated to
manage the Premises or collect the rents. Assignee shall in no way be liable for its failure or refusal to make
repairs to the Premises nor for any debt incurred in connection with the operation of the Premises.
8. DEFAULT
Notwithstanding anything to the contrary contained in this Collateral Assignment of Leases and Rents, the
default provisions contained in the Loan Documents shall in no way be affected by the terms, provisions and
conditions contained in this docume nt.
9. ASSIGNEE’S RIGHT IN THE COLLATERAL
This Collateral Assignment of Leases and Rents supplements the Loan Documents. It is expressly
agreed by the parties hereto that the rights and powers given to Assignee contained in this document shall in no
way prejudice or estop the Assignee in the exercise of the rights afforded to it in the Loan Documents or against
any other collateral of Assignor that Assignee may have.
10. SURPLUS
Except as required by law, Assignee may but shall be under no obligation to do so, turn over to the
Assignor any surplus moneys which the Assignee may have after paying all expenses incurred in connection with
the operation of the Premises and establishing a reserve fund necessary for the payment of fixed charges due or
to become due for such time as Assignee, in its sole discretion deems reasonable. The tender by Assignee to
Assignor of surplus moneys on one occasion shall not obligate Assignee to tender surplus moneys thereafter.
11. FURTHER ASSIGNMENT BY ASSIGNEE
The Assignee may assign all of its right, title and interest in and to this Collateral Assignment of Leases
and Rents to any person or entity to whom the Loan Documents are assigned and upon such assignment, the
holder of the Loan Documents shall have all the rights and powers contained herein as if an original party hereto.
12. CONSENT
Should the Assignor be a corporation, the Assignor hereby expressly certifies that this Assignment was
approved and authorized by the board of directors of such corporation and that there is no requirement under the
corporation’s certificate of incorp oration or by-laws that require the consent of the shareholde rs.
Should the Assignor be a partnership, the execution and delivery of this Collateral Assignment of Lease
and Rents have been duly approved by its partn ers.
Should the Assignor be a limited liability company, the execution and delivery of this Collateral
Assignment of Leases and Rents have been duly approved pursuant to its operating agreement, or if none, by its
managing member.
13. DESCRIPTION OF PREMISES
The Premises are more particularly described on Schedule A which is attached hereto and made a part
hereof.
14. SATISFACTION OF UNDERLYING DEBT
Upon the payment in full of all indebtedness secured by the Loan Documents, Assignee shall execute
and deliver, in recordable form, a release of this Collateral Assignment of Leases and Rents.
15. ASSIGNOR’S COLLECTION OF RENTS
Provided that Assignor is not in default under the Loan Documents, Assignor shall have the right to
collect, but not more than thirty (30) days prior to accrual, all rents, issues and profits from the Premises and to
retain, use and enjoy same.
16. AGREEMENT BINDING
This Collateral Assignment of Leases and Rents shall be binding on the Assignor and its successors and
assigns and shall inure to the benefit of Assignee, its successors and assigns. This Collateral Assignment of
Leases and Rent s may not be changed orally but only by an agreement in writing signed by the parties hereto.
17. LAW GOVERNING
The terms, conditions and provisions of this Collateral Assignment of Leases and Rents shall be
governed by the laws of the State of New York.
18. PRIOR ASSIGNMENT
Assignor represents and warrants that it is the owner in fee of the Premises and has not executed any
prior assignment or pledge of any of its rights, nor are its rights encu mbered, with resp ect to the leases assigned
hereunder, or any of the rents, income or profits due or to become due from the Premises, except as are
encumbered by the Loan Documents. Assigner further represents and warrants that it shall not assign, pledge or
encumber the leases to any party or entity during the terms of this Collateral Assignment of Leases and Rents,
19. LEASES
Annexed hereto and made a part hereof as Exhibit B are the existing leases for the Premises.
IN WITNESS WHEREOF, the Assignor has exe cuted this Collateral Assignment of Leases and Rents the
date and year first written above.
ASSIGNOR:
By: _______________________________________
ACKNOWLEDGEMENT TAKEN IN NEW YORK STATE
State of New York, County of , ss:
On the day of in the year ,
before me, the undersigned, personally appeared
,
personally known to me or proved to me on the basis of satisfactory
evidence to be the individual(s) whose name(s) is (are) subscribed to
the within instrument and acknowledged to me that he/she/they
executed the same in his/her/their capacity(ies), and that by
his/her/their signature(s) on the instrument, the individual(s), or the
person upon behalf of which the individual(s) acted, executed the
instrument.
ACKNOWLEDGEMENT BY SUBSCRIBING WITNESS
TAKEN IN NEW YORK STATE
State of New York, County of , ss:
On the day of in the year ,
before me, the undersigned, a Notary Public in and for said State,
personally appeared
,
the subscribing witness to the foregoing instrument, with whom I am
personally acquainted, who, being by me duly sworn, did depose and
say that he/she/they reside(s) in
(if the place of residence is in a city, include the street and street number if any, thereof);
that he/she/they know(s)
to be the individual described in and who executed the foregoing
instrument; that said subscribing witness was present and saw said
execute the same; and that said witness at the same time subscribed
his/her/their name(s) as a witness thereto
ACKNOWLEDGEMENT TAKEN IN NEW YORK STATE
State of New York, County of , ss:
On the day of in the year ,
before me, the undersigned, personally appeared
,
personally known to me or proved to me on the basis of satisfactory
evidence to be the individual(s) whose name(s) is (are) subscribed to
the within instrument and acknowledged to me that he/she/they
executed the same in his/her/their capacity(ies), and that by
his/her/their signature(s) on the instrument, the individual(s), or the
person upon behalf of which the individual(s) acted, executed the
instrument.
ACKNOWLEDGEMENT TAKEN OUTSIDE NEW YORK
STATE
*State of , County of , ss:
*(Or insert District of Columbia, Territory, Possession or Foreign County)
On the day of in the year ,
before me, the undersigned, personally appeared
,
personally known to me or proved to me on the basis of satisfactory
evidence to be the individual(s) whose name(s) is (are) subscribed to
the within instrument and acknowledged to me that he/she/they
executed the same in his/her/their capacity(ies), that by his/her/their
signature(s) on the instrument, the individual(s) or the person upon
behalf of which the individual(s) acted, executed the instrument, and
that such individual make such appearance before the undersigned in
the
(add the city or political subdivision and the state or country or other
place the acknowledgement was taken).
Title No.
TO
SECTION:
BLOCK:
LOT:
COUNTY OR TOWN
:
RETURN BY MAIL TO:
DISTRIBUTED BY
The Judicial Title Insurance Agency LLC
800-281-TITLE (8485) FAX: 800-FAX-9396
2004
SCHEDULE A
SCHEDULE B
